IAI vs QQQ
iShares US Broker-Dealers & Securities Exchanges ETF vs Invesco QQQ Trust, Series 1
Which is better, IAI or QQQ?
All Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. IAI led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 74.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAI | QQQ |
|---|---|---|
| Expense Ratio | 0.37% | 0.18%Best |
| AUM | $1.4B | $483.5B |
| Dividend Yield | 1.10% | 0.44% |
| Holdings | 40 | 107 |
| YTD Return | +5.50% | +16.87%Best |
| 1Y Return | +7.87% | +22.98%Best |
| 3Y Return (annualized) | +27.72%Best | +24.98% |
| 5Y Return (annualized) | +13.89% | +14.39%Best |
| Volatility (annualized) | 22.5% | 18.6%Best |
| Max Drawdown | -75.8% | -53.5%Best |
| $10,000 over 5 years | $19,161 | $19,586Best |
| Top 10 Weight | 74.7% | 46.5%Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Growth |
| Inception | May 1, 2006 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: May 5, 2006 to Sep 11, 2026 (20.4 years).
IAI vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.4 years both funds cover.
IAI vs QQQ Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IAI returned +7.87% while QQQ returned +22.98%. Year to date, IAI is up 5.50% versus a gain of 16.87% for QQQ.
Over three years, IAI compounded at +27.72% per year against +24.98% for QQQ; over five years the annualized figures are +13.89% and +14.39% respectively. Across the full 20-year window we track, QQQ has the edge at +15.10% annualized vs +7.14%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 22.5% compared with 18.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -75.8% for IAI and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAI charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 36 holdings in IAI and 102 in QQQ, totalling 99.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 36 positions we hold weights for in IAI and 102 in QQQ, against full books of 40 and 107.
What only one of them owns
Measured across the 36 and 102 positions we hold weights for.
QQQ holds 95 positions IAI does not, 97.0% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of IAI and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAI or QQQ?
IAI has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, IAI or QQQ?
Over the past year IAI returned +7.87% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), IAI annualized +7.14% vs +15.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAI or QQQ?
IAI has been the more volatile fund at 22.5% annualized versus 18.6% for QQQ. Worst drawdown: IAI -75.8% vs QQQ -53.5%.
Should I hold both IAI and QQQ?
IAI and QQQ have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAI or QQQ?
IAI yields 1.10% while QQQ yields 0.44%, so IAI currently pays the higher dividend yield.
Is QQQ better than IAI?
QQQ has a lower expense ratio. IAI led over 3Y, QQQ over 1Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 74.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.